Question 1

_____ occurs when a date or price in a stock option agreement is changed so that the option holder can buy shares at a bargain price.

Accepted Answer

A)  "Backdating" 
B)  "Option revising" 
C)  "Retro-vising" 
D)  "Adjusting" 
E)  "Rechecking" 
A)  "Backdating" 
B)  "Option revising" 
C)  "Retro-vising" 
D)  "Adjusting" 
E)  "Rechecking"

Question 2

As an incentive to work efficiently,some organizations pay production workers _____,a wage based on the amount they produce.

Accepted Answer

A)  merit pay 
B)  a sales commission 
C)  standard hour pay 
D)  a piecework rate 
E)  a special bonus 
A)  merit pay 
B)  a sales commission 
C)  standard hour pay 
D)  a piecework rate 
E)  a special bonus

Question 3

Under incentive pay,piecework rates are most suited for routine,standardized jobs with output that is easy to measure.

Accepted Answer

A) True 
 B)False

Question 4

Maria,the financial officer at Boone & Borowitz,encourages the human resource manager to consider using stock options as incentive pay for all employees.The human resource manager cautions that employees could become upset if the options don't turn out to be as valuable as cash.Which of the following statements supports this concern?

Accepted Answer

A)  Stock options are not profitable to employees. 
B)  Option owners must exercise the options,no matter what the market price. 
C)  Employees may not purchase their employer's stock. 
D)  Offering stock options discourages employees from thinking like owners. 
E)  Stock prices in the market may fall below the exercise price of the options. 
A)  Stock options are not profitable to employees. 
B)  Option owners must exercise the options,no matter what the market price. 
C)  Employees may not purchase their employer's stock. 
D)  Offering stock options discourages employees from thinking like owners. 
E)  Stock prices in the market may fall below the exercise price of the options.

Question 5

The balanced-scorecard approach should be avoided while designing executive pay.

Accepted Answer

A) True 
 B)False

Question 6

An organization should keep information,such as changes made to its incentive plan,confidential from its employees.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following types of incentive plans are used to reward individual performance?

Accepted Answer

A)  gainsharing 
B)  merit pay 
C)  Scanlon plan 
D)  profit sharing 
E)  stock ownership 
A)  gainsharing 
B)  merit pay 
C)  Scanlon plan 
D)  profit sharing 
E)  stock ownership

Question 8

Token Inc.is an envelope manufacturer based in Dallas.The employees of the organization receive pay based on the amount of work produced.If the output of an employee is more than the average production volume,then the organization pays more for the work performed.In this case,which of the following incentives is offered by Token Inc.?

Accepted Answer

A)  differential piecework rate 
B)  minimum wage 
C)  merit pay 
D)  retention bonus 
E)  group bonus 
A)  differential piecework rate 
B)  minimum wage 
C)  merit pay 
D)  retention bonus 
E)  group bonus

Question 9

Deep Space Aeronautics is developing a profit-sharing plan.Randy,the human resource manager,assumes the employees are excited to participate in this start-up company's success.However,a supervisor tells Randy about anxiety surrounding a rumor that employees will lose money if the company has a bad year.How should Randy address this problem with employee morale?

Accepted Answer

A)  by recalling that employees are also motivated by factors other than pay 
B)  by removing non-management employees from the team designing the incentive plan 
C)  by conducting meetings to teach about profit sharing and how employees will benefit 
D)  by reminding employees that rumors are against company policy 
E)  by shutting down the company's intranet to prevent further spreading of rumors 
A)  by recalling that employees are also motivated by factors other than pay 
B)  by removing non-management employees from the team designing the incentive plan 
C)  by conducting meetings to teach about profit sharing and how employees will benefit 
D)  by reminding employees that rumors are against company policy 
E)  by shutting down the company's intranet to prevent further spreading of rumors

Question 10

QVO Financial,an auditing firm,distributes a portion of the profits resulting from improvements in productivity and efficiency among its employees.If the company enjoys an improvement of $45,000,60% of the improvement is the company's share.The other 40% is distributed among the employees in the company.Which of the following is being exemplified in this scenario?

Accepted Answer

A)  profit rate 
B)  gainsharing 
C)  commission sharing 
D)  merit gain 
E)  group bonus 
A)  profit rate 
B)  gainsharing 
C)  commission sharing 
D)  merit gain 
E)  group bonus

Question 11

Most pay-related communications come through

Accepted Answer

A)  the company newsletter. 
B)  one designated company speaker. 
C)  rumors between employees from various departments. 
D)  an employee's annual review. 
E)  individual discussions between employees and their supervisor. 
A)  the company newsletter. 
B)  one designated company speaker. 
C)  rumors between employees from various departments. 
D)  an employee's annual review. 
E)  individual discussions between employees and their supervisor.

Question 12

Which of the following is a method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay?

Accepted Answer

A)  merit pay 
B)  profit sharing 
C)  gainsharing 
D)  balanced scorecard 
E)  Scanlon plan 
A)  merit pay 
B)  profit sharing 
C)  gainsharing 
D)  balanced scorecard 
E)  Scanlon plan

Question 13

A feature of an effective incentive pay plan is that it should

Accepted Answer

A)  have performance measures based on employees' requirements. 
B)  not be provided as a direct percentage of employees' performance. 
C)  encourage group performance and sideline individual achievements. 
D)  be the same for all employees in the organization. 
E)  have performance measures linked to the organization's goals. 
A)  have performance measures based on employees' requirements. 
B)  not be provided as a direct percentage of employees' performance. 
C)  encourage group performance and sideline individual achievements. 
D)  be the same for all employees in the organization. 
E)  have performance measures linked to the organization's goals.

Question 14

Which of the following is an organization-level incentive plan that is intended to motivate employees to align their activities with the organization's goals?

Accepted Answer

A)  profit sharing 
B)  gainsharing 
C)  merit pay 
D)  group bonus 
E)  Scanlon plan 
A)  profit sharing 
B)  gainsharing 
C)  merit pay 
D)  group bonus 
E)  Scanlon plan

Question 15

Kelltech Inc.is a sales and marketing company based in Baltimore.It wants to combine the advantages of different incentive-pay plans and help employees understand the organization's goals.Which of the following will help the company accomplish this goal?

Accepted Answer

A)  the Scanlon plan 
B)  a balanced scorecard 
C)  a dashboard 
D)  an employee stock ownership plan 
E)  a differential piece rate system 
A)  the Scanlon plan 
B)  a balanced scorecard 
C)  a dashboard 
D)  an employee stock ownership plan 
E)  a differential piece rate system

Question 16

Employee stock ownership plans (ESOPs)are attractive to employers.Along with tax and financing advantages,ESOPs give employers a way to build pride in and commitment to the organization.Which of the following statements weakens this argument?

Accepted Answer

A)  Employees are not allowed to participate in general body meetings as shareholders. 
B)  The stocks within the trust are too widely diversified to earn high returns. 
C)  The stock earnings are taxed at high rates. 
D)  Employees are forced to return the stock profits to the organization. 
E)  Risks involved will directly affect employees' retirement income. 
A)  Employees are not allowed to participate in general body meetings as shareholders. 
B)  The stocks within the trust are too widely diversified to earn high returns. 
C)  The stock earnings are taxed at high rates. 
D)  Employees are forced to return the stock profits to the organization. 
E)  Risks involved will directly affect employees' retirement income.

Question 17

Which of the following incentive plans are specifically designed to promote group performance?

Accepted Answer

A)  performance bonuses 
B)  gainsharing 
C)  standard hour plans 
D)  merit pay 
E)  commissions 
A)  performance bonuses 
B)  gainsharing 
C)  standard hour plans 
D)  merit pay 
E)  commissions

Question 18

A pay structure specifically designed to energize,direct,or control employees' behavior is known as

Accepted Answer

A)  monthly salary. 
B)  wage. 
C)  incentive pay. 
D)  annual salary. 
E)  fixed pay. 
A)  monthly salary. 
B)  wage. 
C)  incentive pay. 
D)  annual salary. 
E)  fixed pay.

Question 19

The CEO of Logiworks asked the human resource manager,April,to propose an approach to incentive pay.April proposes that the company create a gainsharing plan.What action(s)by the company will best increase the likelihood that gainsharing will succeed?

Accepted Answer

A)  hiring employees who prefer to work alone and equipping them with cost data 
B)  sharing data about costs and setting up time for employees to interact 
C)  indicating that failure to achieve goals will lead to job cuts 
D)  using incentive pay as a substitute for goal setting and performance standards 
E)  promoting continuous improvement and limiting time spent on personal interactions 
A)  hiring employees who prefer to work alone and equipping them with cost data 
B)  sharing data about costs and setting up time for employees to interact 
C)  indicating that failure to achieve goals will lead to job cuts 
D)  using incentive pay as a substitute for goal setting and performance standards 
E)  promoting continuous improvement and limiting time spent on personal interactions

Question 20

Which of the following statements is true of a performance bonus?

Accepted Answer

A)  It is designed to reward group performance. 
B)  It should be re-earned by employees during each performance period. 
C)  It is rolled into base pay and provided yearly or monthly. 
D)  It lacks flexibility and hence it is less popular. 
E)  It is exclusively linked to subjective ratings,rather than objective performance measures. 
A)  It is designed to reward group performance. 
B)  It should be re-earned by employees during each performance period. 
C)  It is rolled into base pay and provided yearly or monthly. 
D)  It lacks flexibility and hence it is less popular. 
E)  It is exclusively linked to subjective ratings,rather than objective performance measures.

_____ occurs when a date or price in a stock option agreement is changed so that the option holder can buy shares at a bargain price.

As an incentive to work efficiently,some organizations pay production workers _____,a wage based on the amount they produce.

Under incentive pay,piecework rates are most suited for routine,standardized jobs with output that is easy to measure.

The balanced-scorecard approach should be avoided while designing executive pay.

An organization should keep information,such as changes made to its incentive plan,confidential from its employees.

Which of the following types of incentive plans are used to reward individual performance?

Most pay-related communications come through

Which of the following is a method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay?

A feature of an effective incentive pay plan is that it should

Which of the following is an organization-level incentive plan that is intended to motivate employees to align their activities with the organization's goals?

Kelltech Inc.is a sales and marketing company based in Baltimore.It wants to combine the advantages of different incentive-pay plans and help employees understand the organization's goals.Which of the following will help the company accomplish this goal?

Employee stock ownership plans (ESOPs)are attractive to employers.Along with tax and financing advantages,ESOPs give employers a way to build pride in and commitment to the organization.Which of the following statements weakens this argument?

Which of the following incentive plans are specifically designed to promote group performance?

A pay structure specifically designed to energize,direct,or control employees' behavior is known as

The CEO of Logiworks asked the human resource manager,April,to propose an approach to incentive pay.April proposes that the company create a gainsharing plan.What action(s)by the company will best increase the likelihood that gainsharing will succeed?

Which of the following statements is true of a performance bonus?

Managing Human Resources

Trends in Human Resource Management

Providing Equal Employment Opportunity and a Safe Workplace

Analyzing Work and Designing Jobs

Planning for and Recruiting Human Resources

Selecting Employees and Placing Them in Jobs

Training Employees

Developing Employees for Future Success

Creating and Maintaining High-Performance Organizations

Managing Employees Performance

Separating and Retaining Employees

Establishing a Pay Structure

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

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Exam 13: Recognizing Employee Contributions With Pay

_____ occurs when a date or price in a stock option agreement is changed so that the option holder can buy shares at a bargain price.

As an incentive to work efficiently,some organizations pay production workers _____,a wage based on the amount they produce.

Under incentive pay,piecework rates are most suited for routine,standardized jobs with output that is easy to measure.

The balanced-scorecard approach should be avoided while designing executive pay.

An organization should keep information,such as changes made to its incentive plan,confidential from its employees.

Which of the following types of incentive plans are used to reward individual performance?

Most pay-related communications come through

Which of the following is a method where a combination of performance measures directed toward the company's long- and short-term goals are used as the basis for awarding incentive pay?

A feature of an effective incentive pay plan is that it should

Which of the following is an organization-level incentive plan that is intended to motivate employees to align their activities with the organization's goals?

Kelltech Inc.is a sales and marketing company based in Baltimore.It wants to combine the advantages of different incentive-pay plans and help employees understand the organization's goals.Which of the following will help the company accomplish this goal?

Employee stock ownership plans (ESOPs)are attractive to employers.Along with tax and financing advantages,ESOPs give employers a way to build pride in and commitment to the organization.Which of the following statements weakens this argument?

Which of the following incentive plans are specifically designed to promote group performance?

A pay structure specifically designed to energize,direct,or control employees' behavior is known as

The CEO of Logiworks asked the human resource manager,April,to propose an approach to incentive pay.April proposes that the company create a gainsharing plan.What action(s)by the company will best increase the likelihood that gainsharing will succeed?

Which of the following statements is true of a performance bonus?

Managing Human Resources

Trends in Human Resource Management

Providing Equal Employment Opportunity and a Safe Workplace

Analyzing Work and Designing Jobs

Planning for and Recruiting Human Resources

Selecting Employees and Placing Them in Jobs

Training Employees

Developing Employees for Future Success

Creating and Maintaining High-Performance Organizations

Managing Employees Performance

Separating and Retaining Employees

Establishing a Pay Structure

Providing Employee Benefits

Collective Bargaining and Labor Relations

Managing Human Resources Globally

Filters